Oil prices rallied on Wednesday after U.S. crude inventories fell in the most recent week, but gains were capped by worries over the economic fallout from the coronavirus pandemic and weak refining margins.
Oil futures have staged a recovery from recent weakness as production has declined more swiftly than expected, reducing the supply glut that caused storage to fill.
Brent crude LCoc1 settled up $1.10, or 3.2%, at $35.75 per barrel while July U.S. crude futures CLc1 ended up $1.53, or 4.8%, at $33.49.
U.S. crude inventories fell by 5 million barrels last week, Energy Information Administration data showed, while stocks at the Cushing, Oklahoma, delivery hub dropped by 5.6 million barrels. [EIA/S]
“What this report confirms is that your worst nightmare – that we’re going to run out of storage space – is probably not going to happen,” said Phil Flynn, senior analyst at Price Futures Group.
Source: Reuters
